The yen moved narrowly around the mid-¥157 range in the Tokyo market. Against a backdrop of expectations for progress in U.S.-Iran talks and a sharp decline in crude oil prices, USD/JPY remained within its range, with the dollar strengthening and the yen weakening.
The yen moved narrowly around the mid-¥157 range in the Tokyo foreign exchange market on the 23rd. As of 10:00 a.m., the dollar was at ¥157.58, about ¥0.19 higher against the yen than the New York market close of ¥157.39. Apart from concerns about intervention, there were few factors supporting yen buying, and dollar buying and yen selling progressed gradually.
In the previous day's New York market, reports said that U.S. President Trump had described talks between the U.S. administration and Iran as having gone "well," prompting awareness of easing geopolitical risks. USD/JPY moved within a range of ¥156.83 to ¥157.78, with fluctuations limited to a narrow band centered around the mid-¥157 range.
Expectations for progress in the U.S.-Iran talks also affected crude oil prices, with WTI crude futures falling approximately 4.5% from the previous day and slipping into the $90s. Expectations of a recovery in Saudi Arabia's crude oil exports also contributed, and crude oil prices remained below the key $100 level. The 10-year U.S. Treasury yield also fell to below 5%.
The euro was range-bound against the dollar, standing at $1.1446 per euro as of 10:00 a.m. in the Tokyo market. EUR/JPY rose modestly to ¥180.39, with the euro bought up to around ¥180.39 per euro in line with the rise in USD/JPY. The dollar index remained elevated in the 100.4 range.
In the South Korean market, USD/KRW fell sharply, ending at ₩1,358.2 to the dollar, down 22.8 won from the previous day. The move was attributed to the sharp decline in crude oil prices and a recovery in risk appetite. In equity markets, the Nasdaq renewed its all-time high, while the KOSPI held above the 7,000 level.